There are some well known rules about the do's and don'ts of spirit house etiquette when it comes to placement.
Rule #1 Do not put a spirit house near a toilet, or a toilet near a spirit house
To my suprise, I found one. This typical squat toilet outhouse was probably built after the spirit house was already there because I can not imagine a priest choosing such a location. The location of a spirit house is chosen by a shaman-brahmin priest who knows how to read energy lines in the land and communicate with the guardian spirits of the property. Normally if there is not a proper location the priest will advise to opt out of having a spirit house.
But what is wrong with a toilet? The theory is that toilets are dirty stinky places, and dirty stinky places attract negative energies. Apparently the land guardians prefer their home to smell nice, and who can blame them?